In the past, if people needed a ride, they would either call a taxi service or head out to the Cincinnati bus stops, but times have changed. With a simple push of a button, people can hire a driver to come pick them up and take them where it is they need to be. Ridesharing is still a new industry, but it is growing rapidly. According to research, it may have grown too quickly.
Ohio legislators are experiencing issues with how and when they should be liable for accidents involving their ridesharing drivers. Before getting into that, it is imperative to understand how ridesharing works. Companies like Lyft and Uber hire people to drive their customers around for a fee. This option is cheaper than the traditional taxi, but the difference in these two services is that with ridesharing, passengers are picked up and driven in personal vehicles. Since drivers use their vehicles, one may become confused as to who is liable when an accident occurs. One must first understand their insurance policies.
Uber and Lyft Insurance Policies
Drivers who work for ridesharing companies are classified as independent contractors. Each ridesharing company has its insurance policies. They are meant to protect them and their drivers, but the policies do differ for each company.
Lyft covers their on-duty drivers even if they have yet to pick up their passenger. If their drivers do not have personal car insurance, they are still covered under a smaller policy through the company. Uber is completely different. If a driver is off-duty, he or she is only covered by his or her personal insurance company. Uber is different also in the fact that they have varying policies for when a driver is on the way to picking up a passenger and when a passenger is actually in the vehicle.
Why Rideshare Claims are Denied
Although companies like Uber and Lyft have insurance policies, they have been able to find small loopholes in the law that allow them to deny accident claims involving their drivers. Rideshare drivers are classified as independent contractors, which leaves the rideshare companies liability-free when an accident occurs.
This has also lead to many insurance companies refusing to cover anyone who is a rideshare driver, as they classify them as a higher risk. Rideshare drivers with personal insurance companies may have their claims denied by the insurance company once they inform them of which capacity they were in when the accident occurred.
What Rideshare Accident Victims Should Do
If you or anyone you know has been injured as a result of a Cincinnati Uber or Lyft accident, be sure to reach out to an attorney who can help you recover maximum compensation. Ohio Accident Attorneys has the resources to connect you with an experienced personal injury lawyer in your area who can make you aware of your legal options. Contact us today for a free case evaluation.